Advice to Entrepreneurs with Grace Hsiang of 7Till8

Welcome to Remote Work Bay with Grace Staining

Introduction to Grace and Seven Till Eight

• Grace Staining is the co-founder and CEO of Seven Till Eight, a surf company based in Los Angeles that specializes in custom-tailored wetsuits for both surfers and divers.

• She recently moved to Torrance, California, just minutes away from her company's studio, allowing her access during quarantine.

Working Dynamics During Quarantine

• Despite having access to the studio, Grace has chosen to work from home while her husband Andrew spends most of his time at the studio. This arrangement provides them both with space during quarantine.

• Transitioning to working from home has been challenging for Grace as she is not accustomed to spending entire days working remotely.

The Origin Story of Seven Till Eight

• Andrew identified a gap in the market where diverse body types were not catered for by off-the-rack wetsuits, leading him to create a custom product line.

• The goal was to ensure that wetsuits fit surfers perfectly rather than forcing surfers to adapt themselves to available products.

Growth and Challenges as an Entrepreneur

• Grace transitioned from a stable nine-to-five job into entrepreneurship, which brought about significant changes in responsibility and risk management.

• As an entrepreneur, she emphasizes the need for self-confidence and reliance since decisions impact every aspect of the business without a clear roadmap.

Navigating Gender Dynamics in Business

• Initially faced assumptions about being merely an assistant due to gender dynamics; however, she notes that challenges stem more from being outsiders in the surf industry.

• Both founders are people of color without traditional ties to surfing culture, which adds complexity when seeking validation within this legacy-driven industry.

Current Business Status Amidst Pandemic

• As Seven Till Eight approaches its fourth anniversary, growth-related challenges have emerged alongside initial validation struggles.

• The pandemic caused their B2B revenue stream (making wetsuits for other brands) to vanish overnight but surprisingly increased consumer interest in surfing on their direct-to-consumer side.

Pivoting in Business During the Pandemic

Adapting to Market Changes

• The company has not had to pivot drastically but has focused on running leaner and doubling down on successful strategies during the pandemic.

• Increased interest in surfing is noted as people are learning to surf locally due to travel restrictions, leading to a rise in new surfers.

• Surfers are appreciating local breaks more than exotic destinations, indicating a shift in consumer behavior towards local experiences.

Surfing Trends and Community Growth

• The water is reported to be more crowded than ever, with many new faces joining the surfing community, which is seen as an encouraging trend.

• Personal anecdotes highlight how the pandemic allowed for unique experiences like kayaking in Malibu that may not have happened otherwise.

Future Vision for Seven Till Eight

Company Goals and Product Focus

• The company aims to specialize further in wetsuits rather than diversifying into other lifestyle products, aspiring to become masters of this technical product.

• There is a strong focus on product innovation and improving supply chain processes related specifically to wetsuit production.

Brand Development Strategy

• Plans include expanding brand presence and solidifying visual identity while developing a comprehensive product roadmap.

• The company believes it has a compelling story that can resonate within the industry, aiming for greater brand recognition.

Target Demographics and Global Reach

Customer Profile

• The primary customers are experienced surfers or divers who understand the importance of proper fit and quality materials; they tend to be 35+ years old with high disposable income.

• Newer surfers also form part of their customer base, seeking high-quality gear from the start.

Geographic Expansion Plans

• Although based primarily on the West Coast, the company has sold products globally across 36 countries with major markets being Los Angeles, San Francisco, and New York.

• Future expansion considerations include markets like Korea, Taiwan, Australia/New Zealand, and Canada while still focusing on domestic growth through e-commerce.

Small Business Support During the Pandemic

Application for PPP Loan

• The speaker applied for the PPP loan and successfully received it, highlighting their initial luck during the pandemic despite a significant drop in B2B revenue.

• They faced challenges in getting responses from banks, applying to around 20 different institutions before receiving offers from only two.

• The application process was described as painful but ultimately rewarding; it took about two months from application to receipt of funds.

Challenges Faced

• Many small business owners are still struggling to secure loans, indicating that not all have had the same success.

• A major hurdle in obtaining the PPP loan was extensive documentation; however, prior experience with funding applications helped streamline their process.

Utilization of Funds

• The PPP loan is primarily intended for payroll retention, with up to 25% usable for office rent.

• They opted for an eight-week package due to seasonal downturn expectations during spring when the pandemic began.

Community and Support Systems

• Post-pandemic, feeling connected has been challenging; support has shifted largely to personal or virtual interactions.

• The speaker credits organizations like Grid 110 and Pixel Exchange as vital support systems that provided resources and mentorship throughout this period.

Impact of Accelerators on Business Growth

• Grid 110 focuses on traditionally unfundable businesses led by women or people of color, offering a wealth of resources and community support.

• Participation in Grid 110 opened doors to opportunities such as international programs and connections with seed investors.

Future Opportunities Through Networking

• Their involvement with these organizations led to being selected for programs like the Tory Burch Foundation aimed at female CEOs.

• The speaker emphasizes referring others to Grid 110 due to its supportive structure without demanding equity upfront.

The Impact of Accelerators on Entrepreneurs

The Value of Support Networks

• Entrepreneurs benefit from no-cost, no-equity resources that foster growth and support without ulterior motives.

• Engaging with fellow entrepreneurs provides a unique understanding of the challenges faced, creating a therapeutic environment for sharing experiences.

• Accelerators create strong support networks where competition is absent, allowing pure collaboration and encouragement among participants.

Trends in the Surf Industry Post-Pandemic

• The surf industry was already transitioning before the pandemic; major brands like Quiksilver and Billabong are struggling under conglomerate ownership.

• The pandemic has accelerated inevitable changes within the surf industry, leading to a potential renaissance in 2021 with an influx of small businesses.

• A diversification trend is emerging in surfing culture, moving away from traditional stereotypes towards more varied influences such as streetwear and punk.

Millennial Influence on Surf Brands

• Younger consumers seek unique products that reflect their identities rather than generic brands; this shift favors independent brands.

• Millennials, now adults, desire sophisticated designs that resonate with their lifestyles rather than targeting teenage demographics.

Sustainability in Wetsuit Production

• The wetsuits are made from limestone-based neoprene instead of petroleum-based materials, highlighting a commitment to eco-friendly practices.

• Materials are sourced from Japan through Yamamoto Corporation, emphasizing quality and sustainability in production processes.

Supply Chain Dynamics During COVID-19

• Manufacturing occurs across multiple countries: materials sourced from Japan, production in Thailand, and design/repair in LA to optimize efficiency.

• Unlike traditional companies that stock inventory seasonally, this business model focuses on small batch production weekly to minimize waste.

Challenges in Supply Chain and Shipping

Impact of Shipping Delays

• The speaker discusses significant delays in overseas shipping and fluctuating air freight rates, which have doubled compared to the previous year.

• The company has absorbed increased shipping costs rather than passing them on to customers, emphasizing a customer-first approach.

Issues with USPS

• The company has experienced multiple lost shipments through USPS, resulting in financial losses as they replaced wetsuits at no charge to customers.

• Due to ongoing issues with USPS, the company has ceased using their services and now relies on FedEx, UPS, and other carriers for larger shipments.

Business Adaptability

• Despite challenges faced by small businesses during the pandemic, the speaker expresses gratitude for opportunities such as funding and sales.

• The importance of maintaining a lean supply chain model is highlighted as a key factor for flexibility and adaptability in business operations.

Remote Work Setup

Home Office Configuration

• The speaker describes their home office setup as minimalistic but functional, featuring dual monitors and a separate office space to maintain work focus.

• When traveling for work, they prioritize having dual monitors and a wireless mouse to replicate their home office efficiency.

Experience Working Abroad

• While working in Korea, access to a well-equipped campus facilitated productivity; without it, working from hotels or coffee shops would have been challenging.

• The collaborative environment with 39 other companies provided entrepreneurial energy that enhanced the overall experience while abroad.

Co-working Spaces Usage

• Although not typically using co-working spaces while traveling, the speaker had access during a program that allowed meetings outside their usual studio environment.

Workplace Safety and Remote Operations During COVID-19

Concerns About Returning to Workspaces

• A conversation reveals that some individuals, like a person from WeWork, still feel unsafe returning to physical workspaces despite them being open.

• The speaker mentions their studio's advantages, highlighting its open-air environment and high ceilings which allow for social distancing.

Business Adaptations and Employment Strategies

• The company operates with a lean structure, primarily utilizing freelancers and contractors, which has allowed them to retain staff during the pandemic.

• The speaker notes that many companies are laying off employees while they have managed to keep their sole in-house employee and even make additional hires.

Economic Responsibility as Business Owners

• The discussion emphasizes the role of business owners in contributing positively to the economy during challenging times by hiring talent instead of cutting jobs.

• There is an acknowledgment of a unique opportunity for businesses to hire from a large pool of eager job seekers due to the current economic climate.

Future Work Locations and Remote Possibilities

• The speaker reflects on their experience running the company remotely from abroad, indicating it was successful but acknowledges a preference for being present during growth stages.

• They express openness to working remotely in different locations as the company grows, suggesting flexibility in future operations.

Personal Travel Aspirations Post-Pandemic

• Taiwan is mentioned as a desired travel destination due to its surf scene and personal connections; this highlights how personal interests influence professional decisions.

• Nostalgia for experiences in Asia is expressed, particularly regarding food culture and lifestyle before returning to America just before the pandemic hit.

Reflections on Quarantine Life in California

• Both speakers share sentiments about missing international travel opportunities due to canceled trips amidst COVID restrictions.

• Gratitude is expressed for living in California during quarantine; access to nature and local produce enhances their remote working experience.

Exploring Local Attractions

• One speaker shares recent visits to Joshua Tree and Big Bear, emphasizing newfound appreciation for local attractions that were previously overlooked.

Exploring New Norms: Life During Quarantine

Embracing Change and New Experiences

• The speaker expresses a mix of sadness and joy about a recent experience, highlighting their admiration for someone named Josh, describing him as beautiful, funny, and stunning. This reflects a personal connection that has been deepened during quarantine.

• The speaker discusses the benefits of having more free time during quarantine, allowing them to explore new beaches they hadn't visited before. This indicates a shift in lifestyle and priorities due to the pandemic.

• They mention acquiring an estate pass for state beaches, which has enabled them to surf in areas like South Orange County or Ventura without the usual traffic delays. This highlights how reduced traffic has made travel easier during lockdown.

• Despite the pandemic, popular beach locations like Malibu remain crowded, suggesting that many people are seeking outdoor activities as restrictions ease. The speaker notes an increase in visitors compared to typical summer days.

• The conversation shifts towards restructuring daily routines; the speaker reflects on how quarantine has prompted them to question their previously rigid schedules and consider more flexible work-life balance options.

Adapting Work Habits

• The speaker acknowledges their past adherence to strict work hours but is now exploring what schedule works best for them amidst remote working conditions brought on by the pandemic.

• Acknowledgment of mutual adjustments in work habits due to remote working trends during the pandemic is noted. The discussion emphasizes ongoing adaptation as both speakers navigate these changes together.

• Gratitude is expressed towards Grace for participating in the podcast, indicating a positive relationship and support system amid challenging times.